Media

Thames Water Utilities Limited - financial results for the year to 31 March 2013

10 June 2013

OPERATING SUMMARY for 2012/13

• Customers and environment benefited from ongoing, record investment
• Water bills remained second-lowest in the industry
• Leakage reduction target hit for seventh consecutive year
• Additional costs incurred due to exceptional weather (drought then flooding)
• Bad debt increased as customers continued to be affected by the economic downturn
• Improved health and safety performance - 24% fall in reportable incidents

Customers• Customer service improved but still far below desired level – a key area of on-going focus
• Drought: water restrictions imposed to conserve supplies between April and June 2012, as a result of the driest two-year period on record
• Increased incidence of flooding of some customers’ properties due to what became
England’s rainiest year on record - resources deployed to limit extent of flooding

Performance• Met annual leakage-reduction target for the seventh consecutive year
• Quality of customers’ tap water remains among the best in the country
• “Security of supply” of water to customers at top level
• Environmental compliance of 350 sewage works remains close to best level ever
• Greenhouse emissions cut 12% on 1990 levels, on track to hit 20% by 2015
• Desalination plant used for the first time to boost water supplies during drought
• Waste network under pressure - additional costs incurred tackling increased sewer flooding, pollutions and blockages
• 100% of sewage sludge put to beneficial use

Looking ahead• Fundamental business review under way to generate cost-savings and service improvements
• Plans being developed to apply to Ofwat to recover significant unfunded costs resulting from transfer of private sewers, bad debt and the Thames Tideway Tunnel
• Alliance formed with contractors to deliver the 2015-2020 investment programme
• Capital efficiencies totalling £90m secured since 2010 will be reinvested in the business.

Martin Baggs, chief executive of Thames Water, said: “Over the past financial year exceptional weather conditions have presented tough challenges for the business. The period began with a drought, following the driest two-year period on record, and ended with widespread flooding after becoming England’s rainiest 12 months on record.
“Despite these challenges we have for the third year running carried out a further £1 billion of improvements to our networks, while the average household bill in our region is the second-lowest in the country. Our operational performance remains strong.
“We are now focussed on the significant challenges ahead, including continuing to improve customer service and taking forward plans for the Thames Tideway Tunnel.”